M Studios Retails Their Own Brand of Camera That They

Multiple Choice

M Studios retails their own brand of camera that they manufacture in their plant for $500. The plant capacity is 1,000 units per month and variable costs are $225 per camera. Total fixed costs for the year are $2.16 million. How many cameras must be sold per month to have a net income of $40,000?

A) 850
B) 900
C) 800
D) 750
E) 825